How is property classified?

Use determines the classification of property. Classifications are important because they are used to determine assessments. (Remember that the assessment is a percentage of the property's appraised value. Classification determines assessment level.) There are four property classifications for real estate:

  • Residential- 25%. All single family residences, owner-occupied condominiums and owner-occupied duplexes are classified as residential.
  • Commercial and Industrial- 40%. All property used, or held for use, for commercial, mining, industrial, manufacturing, trade, professional, club (public or private), nonexempt lodge, business, or similar purpose, is classified as industrial and commercial. Additionally, all real property which is used, or held for use, for dwelling purposes that contains two or more rental units falls under this classification.
  • Farm- 25%. Farm property includes all real property which is used for, or held for use, in agriculture, including but not limited to, growing crops, pastures, orchards, nurseries, plants, trees, timber, raising livestock or poultry, or the production of raw dairy products, and acreage used for recreational purposes by clubs.
  • Exempt- 0%. Religious, scientific, educational, charitable and non-profit organizations must apply to obtain exempt status. The State Board of Equalization reviews all applications in order to determine if the property qualifies for an exemption. Most government-owned properties are automatically exempt from taxation. Exempt applications are available in the Assessor's Office, but must be mailed to the SBoE when completed.